By Satoshi Sugiyama

TOKYO (Reuters). Toyota Motor (NYSE 🙂 Corp will report higher profits for the coming year, thanks to solid demand, a weaker yen and a strong economy. The global automotive industry is under pressure from rising commodities costs, and woes in the supply chain.

This forecast would be in addition to the expected strong profit growth in the last year. It highlights the Japanese automaker’s ability navigate difficult environments. Partly by increasing the prices of customers as supplies tighten, this could also highlight their ability to charge more.

Seiji Suzuura, senior analyst at Tokai Tokyo Research Institute, stated that the market will pay close attention to how high commodities prices affect Toyota and Japanese carmakers.

According to Refinitiv’s poll, Toyota expects to see an increase of 11% in its operating profit to 3.36 trillion Japanese yen ($25.7billion) during the fiscal year which began April 1.

Analysts anticipate that profit will rise by 37% to 3.02 Trillion yen for the just concluded year.

According to the company, both sales and global production saw an increase in the last year for the first-time in three years. To ease the load on its suppliers that were frustrated by multiple production plan changes due the scarcity of parts, the company had to reduce production from April to June.

Not only will commodities prices rise, but supply chain problems are likely to arise from lockdowns that followed COVID-19-related outbreaks in China.

According to Refinitiv, Rival Honda Motor Co will forecast a 13% rise in profits to 925 billion yen. Nissan (OTC) Motor Co, however, is forecasting a 50% increase to 318.5 billion yen.

Toyota will release results Wednesday; Nissan on Thursday, and Honda on Friday.

($1 = 130.5500 yen)